BMW AG forecasts that it will reach an "even greater improvement in pre-tax earnings than originally predicted" for this year, sticking to its pattern of only giving a clear target for its automotive segment’s operating margin.
Specifically, the company is forecasting a rise of at least 10 percent in its sales this year to more than 1.6 million vehicles compared to the previous estimate of more than 1.5 million.
During the first half of the year, the BMW Group sold 833,366 vehicle units, which is an annual increase of 19.7%. The positive forecast has been attributed to the increasing profitability at the company’s core automotive business as well as an extra 100,000 vehicle units in sale.
The company disclosed that in view of the current “strong performance and the good outlook” in the next months, the automotive segment is now expected to obtain an EBIT margin of more than 10 percent for the entire year.
The company is pre-releasing guidance in advance of its scheduled quarterly results on August 2. BMW continues to aim for an EBIT margin range from 8 percent to 10 percent for its automotive segment for 2012.
During the early parts of May, the company stated that the EBIT margin of its automotive division would exceed 8 percent while achieving higher 2011 pretax profit compared to 2010.